Pennsylvania Governor Proposes Fast-tracking Power Plant Construction and Tax Breaks for Hydrogen Projects
Key Ideas
  • Governor Shapiro aims to accelerate the development of major power plants in Pennsylvania and incentivize projects producing electricity and hydrogen to combat rising electricity costs.
  • Shapiro plans to establish the Pennsylvania Reliable Energy Siting and Electric Transition Board to streamline energy project permitting and support.
  • Proposed tax credits of up to $100 million per year for power plants, $49 million for hydrogen producers, and $15 million for aviation fuel producers await legislative approval.
Governor Josh Shapiro of Pennsylvania announced plans to expedite the construction of large power plants in the state and provide substantial tax breaks for projects that contribute electricity to the grid and produce hydrogen. The initiative, introduced ahead of Shapiro's budget proposal, aims to address the energy crisis and boost competitiveness in attracting major projects. Shapiro emphasized the need for swift action to establish new energy sources and enhance Pennsylvania's energy leadership. The proposed tax credits target significant projects engaged in electricity generation, hydrogen production, and sustainable aviation fuel. Additionally, Shapiro's proposal includes the creation of a board to facilitate energy project siting decisions and streamline support mechanisms. Although the specifics of qualifying power plants are subject to legislative discussion, the focus excludes the Three Mile Island nuclear power plant restart. While receiving support from renewable energy advocates, Shapiro's energy policy faces criticism from Republican lawmakers concerned about hindering natural gas-based power plant development. Despite previous challenges in implementing energy-related initiatives, Shapiro remains focused on advancing environmental goals and supporting energy innovation, including projects like CNX Resources' $1.5 billion hydrogen fuel facility proposal at Pittsburgh International Airport.
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